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Governor Perdue Has Right Idea

Dare I say that Governor Perdue may be on to something? According to a recent article on WRAL.com, a good read by the way, the Governor is open to privatizing parts of the ABC System and legalizing video poker for the purpose of increasing tax revenue and allowing government to focus on its core missions of economic development and education. In principle, Governor Perdue is on the right track. State government should focus on its job of economic development and education; maintaining transportation infrastructure is also a priority.

Noting the contradictory stance the General Assembly has taken by allowing a state run lottery while banning privately run gambling in the form of video poker and sweepstakes games is an admission that the state’s policy on gambling is hypocritical. Perdue, having cast the tie-breaking vote on the state lottery in 2005, knows that to prevent being a hypocrite herself she must support private gambling ventures – though tightly regulated. Allowing video poker and sweepstakes games in addition to the state lottery, plus the tax revenues that would roll in as a result of taxing the games, would allow the state to focus on its core mission and eliminate the contradiction.

Privatization of the ABC would certainly be a hot issue if it ever received the full attention of the legislature and the public. With an outside evaluation of the system on its way, privatization of the archaic system may yet make its way into the limelight. If the General Assembly were to vote to privatize liquor sales, the tax revenue from such would likely rise dramatically. Currently, the ABC System attempts to limit liquor sales, thus depressing revenue. Proliferation of liquor availability would likely lead to even more increased sales volume and, therefore, more tax revenue. Thus, the state would have sufficient revenue to focus on economic development, transportation infrastructure and education.

While these ideas mentioned by Governor Perdue are worthy of consideration, privatizing liquor sales and allowing video poker and sweepstakes games are by no means an exhaustive list of ideas to maximize the efficiency and effectiveness of state government and cover revenue gaps. Furthermore, Governor Perdue may not agree with what conservatives consider to be the best economic development strategies. However, the Governor should be given credit for understanding that our state government as it currently exists is unsustainable and in need of a shakeup.

Reader Interactions

Discussion

Perdue would be right to privatize the ABC system and to allow for video poker, but she would be doing it for the wrong reasons.

Do we, as advocates of liberty and limited government, want to justify any policy because it will give more money to the government?

I think not.

By the way, the government does not need money for “economic development.” In fact, the State shouldn’t be involved at all in meddling with the market process. Treat all businesses the same and reduce the tax and regulatory burden and free up entrepreneurs to seek the most efficient means of satisfying consumer wants, thus maximizing wealth creation.

Governor Perdue may advocate these (the right) ideas for the wrong reason but I would rather her support some of the right ideas for the wrong reason than support the wrong ideas for any reason. Agreeing with someones policy initiative should be separated to some degree from agreeing with that persons motive. As for economic development, where Governor Perdue’s incentives (favortism) policies deserve criticism, conservatives would surely advocate for a more equitable tax structure and lower taxes which, if we are on the wrong side of the laffer curve, will drive up tax revenues. Revenue for the state is not necessarily a bad thing if it is spent on what state government is supposed to spend money on – transportation infrastructure and education – and is not wasted.

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